USD/INR

Indian rupee opened lower at 74.3750 against the dollar following its worst session in more than one-and-half years. The Reserve Bank of India’s response to the expected increased volatility is key to the rupee's outlook. Ten-year US yield was at 1.6686%.. It’s a relatively quiet day ahead on the economic calendar. Weekly jobless claim figures are due out later today. We don’t expect too much influence from the numbers, however, with positive market sentiment towards the economy likely to offset any negative numbers. Away from the economic calendar, any chatter on U.S and China relations will need monitoring. . Brent crude oil contract was trading 0.6% lower at $62.76 per barrel.

EUR/USD

It’s a relatively quiet day ahead on the economic calendar. German factory orders for February are due out later in the day.

The ECB monetary policy meeting minutes are also due out. Following the ECB’s promise to ramp up bond purchases to curb increasing borrowing costs, expect any resistance to test support. Away from the economic calendar, lockdown and vaccine news will also need monitoring. At the time of writing, the EUR was down by 0.01% to $1.1871.

GBP/USD

It’s also a relatively quiet day ahead on the economic calendar. Construction PMI figures for March are due out. With the market focus on the government’s easing of lockdown plans, however, we don’t expect the PMI to influence. Away from the economic calendar, the focus will be on news from the government on what lies ahead vis-à-vis reopening the UK economy. At the time of writing, the Pound was up by 0.19% to $1.3760.

USD/JPY

In the day ahead, if the risk-off mood deepens then the US dollar could regain its upside momentum and drive USD/JPY back above 110.00. However, the dollar’s fate hinges on the broader market sentiment and Powell’s comments after the dovish Fed minutes were largely ignored. At the time of writing, the Japanese Yen was down by 0.11% to ¥109.83 against the U.S Dollar. 

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